Fidelity Bank posts N146.9b gross earnings, N14.9 billion profit

Proposes N4.6 billion dividend
Fidelity Bank Plc has recorded gross earnings of N146.9 billion and profit after tax of N13.9 billion in its 2015 operations.

Specifically, the bank audited result for the year ended December 31, 2015 showed an increase in gross earnings to N146.9 billion from N136.1 billion achieved in 2014 financial year.

Similarly, its profit after tax also rose from N13.8 billion to N13.9 billion during the year under review.

According to a statement by the bank, the percentage increase in gross earning was 7.9 per cent while profit rose by 0.8 per cent.

Based on the improved performance, the directors of the bank are recommending a dividend of N4.6 billion, translating to16 kobo per ordinary share of 50 kobo each , subject to withholding tax at the appropriate tax rate, which will be deducted before payment.

The bank’s total equity increased by 6.0 percent to N183.5 billion from N173.1 billion in 2014, while net operating income stood at N83.9 billion, a moderate 12.5 percent rise from N74.6 billion in 2014.

The Chief Executive Officer of the bank, Nnamdi Okonkwo pointed out that that the bank’s 2015 financial performance reflects the disciplined execution of the management’s medium term strategy and the resilience of evolving business models despite the extremely challenging business environment in 2015.

He explained that the bank improved the earning capacity of its balance sheet even with a decline in fee income precipitated by a N10.0 billion reduction in its foreign exchange income.

He assured shareholders that the bank would continue to increase yields on earning assets faster than the growth in funding costs which, according to him, improved Net Interest Margin (NIM) to 6.9 percent in 2015.

The bank chief added that the improvement was an indicative of the bank’s continual focus on balance sheet optimisation, rebalancing of its loan portfolio in consonance with its medium term strategy and increased growth in retail deposit base.

“In spite of the strong double digit growth of 12.5 percent in net operating income, Profit before Tax (PBT) for the period ended December 31, 2015 assumed a downward trajectory, declining by 9.6 percent to N14.0 billion from N15.5 billion in 2014 Financial Year.